New Investment Rules Prioritize Maldivian Businesses

The Ministry of Economic Development and Trade has officially gazetted new foreign investment entry rules, marking a major shift in how international investors can operate in the Maldives.

The revised regulations, introduced under the Foreign Investment Act (September 2024), aim to empower Maldivian businesses and protect key national industries, while still welcoming foreign expertise in areas that require international capital and advanced technical knowledge.

Key Goals of the Reform

According to the Ministry, these policy changes are designed to:

• Strengthen local business participation in competitive sectors
• Ensure national security and market stability
• Encourage foreign partnerships only where necessary
• Promote sustainable economic growth with greater local ownership

These amendments reflect the government’s broader vision to make the Maldives economy more resilient, inclusive, and locally driven.

Sectors Now Restricted for Foreign Investors

Effective from the date of gazette, several business sectors that were previously open to foreign investment are now restricted or closed. Certain industries will only allow joint ventures with Maldivian partners under defined shareholding limits, while others are entirely reserved for locals.

• Restricted or Prohibited Sectors Include:
• Building servicing and maintenance
• Business support services
• Resort construction below USD 10 million and general construction under USD 15 million
• Educational support, tutoring, and Quran classes
• Government and public service contracts
• Non-physiotherapy medical clinics
• Tourism operations such as picnic islands, cafés, restaurants, travel agencies, tour operators, and employment agencies
• Leasing and rental services
• Logistics and postal services
• Manufacturing of wood, rubber, brass, and handicrafts (excluding tobacco and furniture)
• Banking and financial institutions
• Photography, video production, and publishing
• General sea transportation
• Non-profit and NGO activities
• Sand mining and dredging
• Advertising, event management, legal services, and market research
• Real estate projects below USD 100 million
• Repair services for electronics, household, and personal appliances
• Security and investigative services
• Retail, wholesale, and construction wholesale businesses

Transitional Period for Existing Foreign Investors

To ensure a smooth transition, the Ministry has established a Foreign Investment Transition Committee. This body will review existing approvals on a case-by-case basis and guide foreign companies already operating in restricted sectors on how to comply with the new requirements.

A Strategic Step Toward Local Empowerment

The government’s decision represents a strategic realignment of the Maldives’ investment framework. By prioritizing Maldivian entrepreneurs and investors, the country aims to retain more economic value domestically while still leveraging foreign expertise where it adds genuine benefit.

As the Maldives continues to attract global attention as a tourism and investment hub, these reforms signal a new era of economic self-reliance and partnership-driven growth.